Latest News on Dividend and Preferred Stocks

Bank Holding Company KeyCorp Sells a Fixed-to-Floating Preferred

$135 billion asset bank holding company KeyCorp has sold a new fixed-to-floating rate preferred with a still stingy initial coupon of 6.125%.  Obviously the company is working for the common shareholders and want to hold the rate as low as possible, but in the face of rising interest rates this initial rate is really a […]

When You’re Snoozing, You’re Losing Income

We have written before that when you are not invested you are cutting your income stream.  When we write these things we include ourselves in those that unnecessarily lose income to what really amounts to laziness (or maybe we are distracted–that sounds better). Today a reader sent a note and asked why we didn’t add […]

Sharply Higher Interest Rates – What Now?

It has been almost 3 weeks since Donald Trump won the presidential race and we have been through plenty of pain in the income investing arena since that time.  Honestly I believe this was simply a knee jerk reaction without any basis in fact–darn little has changed in fundamentals and future economic change is likely […]

MLP Heavyweight, NuStar Energy L.P. Sells a Tasty Preferred

Master Limited Partnership (MLP) NuStar Energy L.P. (NYSE:NS) has sold a new fixed-to-floating preferred unit issue with an initial fixed coupon of 8.5%. NS is a large MLP with annual revenue in the $1.6 billion area which is generated from 8,700 miles of pipeline and 79 storage and terminal locations.  Although net income has fallen […]

Pain Continues to be Inflicted on Income Investors

After last weeks beat down on preferred stocks, exchange traded debt and REITs we thought we might see a little bit of respite from the pain this week, but thus far that has not been the case. With the 10 year treasury opening in the 2.26% area this morning it signaled further pain ahead and […]

Income Investors Shouldn’t Panic

We have gotten a number of notes from readers concerned with their portfolios–not surprising, as perpetual preferreds, exchange traded debt and REITS have been severely hammered this week.  The REIT selloff is simply a continuation of a sell off that started a month ago and stems from higher interest rates which make borrowing costs higher […]

Quality Perpetual Preferreds and Baby Bonds Getting Shellacked

11 a.m. In a continuation of the trends from all week perpetual preferreds and long duration baby bonds are getting the tar beat out of them.    This is something that happens when interest rates rise sharply and is the same price action we have seen over the years–when rates move higher high quality preferreds […]

Volatile Markets So We Add a Couple Issues

Wow, who would have guessed that after the DJIA being down over 800 points Tuesday night and the 10 year treasury being off 10 basis points (it was trading in the 1.73% area over night) that we would end the trading day with a DJIA gain of over 250 points and a 10 year treasury […]

Looking for Bargains this Morning

After last nights Trump presidential victory Dow futures fell more than 800 points as financial markets were stunned.  This morning the futures are more reasonable being down only 300-350 points. We will take the opportunity to try to buy some bargains today–if they appear.  In particular we will be looking at the REITs as many […]

Stepping in For a Bargain

We stepped up today and added a high yielding REIT to our Blended Income portfolio.  We purchased 1,000 shares of New Senior Investment Group (NYSE:SNR) for the model. SNR was previously a part of Newcastle Investment which was spun off in November, 2014. SNR is a large owner of senior living properties and the most […]

Axis Capital Holdings Sells a Large Preferred Offering

Reinsurance company Axis Capital Holdings LTD (NYSE:AXS) has sold a 22,000,000 share preferred stock offering with the typical stingy coupon of 5.50%.  The company is investment grade rated so this coupon was expected. The shares are trading on the OTC Grey Market under the temporary ticker of AXHHF and has traded in the $24.65 to […]

REITs Continually Hammered Lower as Preferreds and Baby Bonds Drift Down

Whether it be the specter of a Fed Funds rate hike in December or simply a tiredness caused by a vicious political campaign REITs are being unloaded at a quick pace–today being down by about 2%.  While the viciousness of the REIT drop isn’t being lavished upon preferred stocks and baby bonds, the direction is […]